4B Flashcards
Which of the following budgets is the comprehensive planning document for the entire organization?
Master Budget
The combined cash budget ________.
merges budgeted cash collections and cash payments to project the firm’s ending cash position
Which of the following is important to a manager at a merchandising company when preparing the master budget?
The length of time between sales and deposits
Actual or prior year budgeted data is ________.
the starting point for creating the budget.
Which of the following is NOT an outcome of the combined cash budget?
Total liabilities and stockholders’ equity
What are the required inputs for the FORECAST.LINEAR function?
Which of the following is TRUE about credit card sales and budgets?
A sale is shown on the sales budget, in the same month as the sale.
When using the INTERCEPT function in Excel, what data is required?
Known or existing x-axis and y-axis values
Customer World provides products and services to customers and allows customers to pay by credit card. On Thursday, a customer purchased a computer for $600 and used a credit card to pay. The credit card company charges Computer World a transaction fee equal to $0.20 + 1% of the total charge.
What is the transaction fee Customer World must pay on this sale?
6.20
What are the required inputs for the FORECAST.LINEAR function?
known or existing x-axis and y-axis values
The Paper Mill expects to sell 6,000 reams of paper in October and 8,000 in November for $6 each.
What is the total sales revenue for the sales budget during October and November?
The total sales revenue for the sales budget during October and November is $36,000 October; $48,000 November. The other answers are not correct.
October: 6,000 × $6 = $36,000
November: 8,000 × $6 = $48,000.
Benchmarking_______
Which of the following budgets reveal a manager’s intent to invest in new property, plant, or equipment?
Capital expenditure Budget
In the scatterplot and trendline shown above, which option extends the trendline past the highest observation on the x-axis?
Forecast forward
Benchmarking_ _ _ _ _ _ _
May help a manager motivate employees and provide a measure to evaluate performance.
Customer World provides services to customers and allows customers to pay by credit card. On Thursday, a customer purchased a case of flash drives for $65 and used a credit card to pay. The credit card company charges Computer World a transaction fee equal to $0.25 + 2% of the total charge.
What is the transaction fee Customer World must pay on this sale?
$0.25 + (2% ×$65) = $0.25 + $1.30 = $1.55
Which Excel function will predict the point at which a regression line crosses the y-axis?
Safety stock is
Inventory is kept on hand to account for increases in consumer demand.
A line of credit ________.
Is a lending tool the company can use to draw money as needed at a specified rate of interest, for a specified amount of time, paying on the actual amount owed instead of a closed-end note
Which Excel function will predict the point at which a regression line crosses the y-axis?
Intercept.
The managerial accountant at Local Produce Services expects to collect 40% of its credit sales in the month after the sale and 60% two months after the sale. Assume credit sales in January were $200,000 and February sales were $100,000.
January credit sales
$200,000
February credit sales
$100,000
What is the anticipated cash collection of credit sales in March from January and February sales?
The anticipated cash collections of January and February credit sales in March is $160,000. The other answers are not correct.
January: 60% × $200,000 = $120,000
February: 40% × $100,000 = $40,000
$120,000 + $40,000 = $160,000
Customer World provides products and services to customers and allows customers to pay by credit card. On Thursday, a customer purchased a computer for $600 and used a credit card to pay. The credit card company charges Computer World a transaction fee equal to $0.20 + 1% of the total charge.
What is the transaction fee Customer World must pay on this sale?
$0.20 + (1% × 600) = $0.20 + $6 = $6.20
Which of the following is a benefit of budgeting which helps a manager motivate employees and evaluate performance?
Benchmarking
Inventory kept on hand to account for increases in consumer demand or machine malfunction in case of emergency is ________.
Safety Stock
Inventory kept on hand to account for increases in consumer demand or machine malfunction in case of emergency is ________.
Units to produce.
